Download Arkansas Real Estate License Law Question And Answers 2023 and more Exams Nursing in PDF only on Docsity!
And Answers 2023
A property management agreement is a written contract between the - Correct Answer ✅ owner and property manager The answer is owner and property manager. A property management agreement is a written contract between the owner and the property manager. How are members of the Arkansas Real Estate Commission's board selected? - Correct Answer ✅ Appointed by the governor The answer is appointed by the governor. The members of the board are appointed by the governor and approved by the senate. Arkansas license law requires that - Correct Answer ✅ a broker make the real estate business his or her major activity if employing agents. The answer is a broker make the real estate business his or her major activity if employing agents. Anybody can remove the signs from the subject property. Arkansas license law states that a broker engaged in any field other than real estate is presumed to be gainfully employed in a non-real estate related field. The presumption may be overcome by proof that such employment is in a "like-kind" field to real estate. No law requires that real estate appraisers look at a property prior to listing. Licensees must take six hours of continuing education each year in order to have their license renewed active.
And Answers 2023
What are the three types of agency recognized in Arkansas? - Correct Answer ✅ Seller, buyer, and disclosed dual The answer is seller, buyer, and disclosed dual. Arkansas recognizes single agency, such as representing the seller or the buyer, as well as dual agency, as long as both parties agree. A salesperson had his Arkansas salesperson license revoked. When will the salesperson be eligible to reapply for licensing? - Correct Answer ✅ Two years The answer is two years. A licensee whose license has been revoked shall be eligible to apply for a new license two years from the date of revocation. Buyer-brokerage contracts in Arkansas - Correct Answer ✅ are required by law to be in writing if they are exclusive in nature. The answer is are required by law to be in writing if they are exclusive in nature. The buyer-brokerage contract is an employment contract and must be in writing if exclusive in nature. Open buyer-brokerage agreements are not required to be in writing but are highly recommended as set forth in Regulation 10. Buyer-brokerage contracts are definitely regulated, just as listing agreements are regulated.
And Answers 2023
The answer is deposit the money in an existing special escrow account in which all earnest money received from buyers may be held at the same time. The broker may deposit this buyer's funds into an escrow account containing money from other customers and clients. Detailed record keeping is required. A licensee is representing the seller solely in a real estate transaction. When must the agent disclose his or her agency relationship to the prospective buyer? - Correct Answer ✅ In a timely manner The answer is in a timely manner. The licensee should disclose to the buyer his or her agency relationship with the seller in a timely manner under the particular circumstances, so as to avoid possibly eliciting or receiving information that otherwise would need to remain confidential. The purpose of the Arkansas Real Estate Recovery Fund is to - Correct Answer ✅ provide a means of compensation for actual monetary losses suffered by individuals as a result of the acts of a licensee while violating the license law or committing other illegal acts related to a real estate transaction. The answer is provide a means of compensation for actual monetary losses suffered by individuals as a result of the acts of a licensee while violating the license law or committing other illegal acts related to a
And Answers 2023
real estate transaction. The purpose of the recovery fund is to provide a means of compensation for actual monetary losses suffered by individuals as a result of the acts of a licensee while violating the license law or committing other illegal acts related to a real estate transaction. An associate broker - Correct Answer ✅ has met the qualifications of a broker. The answer is has met the qualifications of a broker. An associate broker is a person who has met all the requirements for a broker's license but has not chosen to apply to become the principal broker. A licensed principal broker must hold the license of an associate broker. In Arkansas, an applicant for a real estate license must do all of the following EXCEPT - Correct Answer ✅ live within the state of Arkansas. The answer is live within the state of Arkansas. An applicant does not have to live in Arkansas. There are many out-of-state Arkansas licensees. In Arkansas, applications for any real estate license must be completed prior to taking the written exam. The applicant must be at least 18 years of age and provide three character reference signatures. A licensee fails to disclose his or her agency relationship under the time and manner required by law. If found in violation, the Arkansas Real
And Answers 2023
for funds delivered to an escrow agent solely selected by the parties to a transaction. Cash is an acceptable form of earnest money. Under Arkansas real estate law, the licensee who must be employed in real estate full-time is a(n) - Correct Answer ✅ designated executive branch broker. The answer is designated executive branch broker. The designated executive branch broker must be a full-time broker and may not be gainfully employed in a non-real-estate-related field. All of the following statements regarding the Arkansas Real Estate Commission are true EXCEPT - Correct Answer ✅ the Arkansas Association of REALTORS® appoints the members of the commission. The answer is the Arkansas Association of REALTORS® appoints the members of the commission. The REALTORS® association does not appoint the Arkansas Real Estate Commission members. The commission enforces the rule. An executive director administers the operations of the commission. The exams are written under the supervision of the commission and administered by an independent testing company.
And Answers 2023
A broker has former clients interested in seeing a new listing that the broker's firm has just listed. In this situation, the broker - Correct Answer ✅ may want to consider discussing dual agency with the buyers. The answer is may want to consider discussing dual agency with the buyers. The broker may wish to discuss dual agency with the buyers (former clients or customers may have disclosed information that would be expected to remain confidential and not disclosed to the seller, such as seller needs, motivations, strategies for selling, and financial situation). Arkansas does not allow facilitator position or split agency arrangements. A licensed salesperson may hold a concurrent license with more than one Arkansas broker under which of the following circumstances? - Correct Answer ✅ Under no circumstances The answer is under no circumstances. A salesperson may be licensed with only one broker. In Arkansas, who is generally responsible for ensuring that the closing is handled in exact accordance with the contract? - Correct Answer ✅ Principal broker The answer is principal broker. It is generally the responsibility of the principal broker of the listing firm to ensure that the real estate closing
And Answers 2023
D)
when an agent has written permission from the property owner to leave a real estate sign on the property, even once the listing agreement has expired. - Correct Answer ✅ when an agent has written permission from the property owner to leave a real estate sign on the property, even once the listing agreement has expired. The answer is when an agent has written permission from the property owner to leave a real estate sign on the property, even once the listing agreement has expired. Only with the owner's authorization may a real estate sign remain up after the listing expiration. This is often done with the buyer following closing, whereby the sign is allowed to remain with "sold" rider on top to attract additional seller-clients. Dual agency must always be disclosed and have the written informed consent of all parties. All monies received must pass through the principal broker. The failure to identify the firm name within an advertisement constitutes a violation of law known as "blind advertising." What information about a property would a licensee most likely be expected to have knowledge and disclose to buyers under the Arkansas real estate license law? - Correct Answer ✅ The presence of lead on an older property The answer is the presence of lead on an older property. Environmental hazards affecting the property that are required by law must be disclosed. However Arkansas real estate license law does not require a
And Answers 2023
licensee to disclose information about stigmatized property, groundwater hazards, or to track, discover, or research the status or location of sex offenders for the benefit of the client. Licensees who have had their licenses suspended or revoked by the Arkansas Real Estate Commission will have their names and case information - Correct Answer ✅ published in a newspaper of statewide circulation. The answer is published in a newspaper of statewide circulation. The Arkansas Real Estate Commission will publish a list of those names of licensees who have had their licenses suspended or revoked, together with the conditions relative to their violations. Such information is generally provided to all current licensees but is accessible to the public upon request. Which of the following is TRUE if a broker establishes an account to hold money belonging to others? - Correct Answer ✅ All checks, deposit slips, and bank statements must include the words "escrow" or "trust" as part of the account name. The answer is all checks, deposit slips, and bank statements must include the words "escrow" or "trust" as part of the account name. The account must be clearly labeled as "trust" or "escrow" to identify that the money in the account belongs to other people and not the broker. The broker does not have to open a new account for each earnest
And Answers 2023
The answer is a broker may maintain a minimum balance of personal funds in a trust account if so required by the bank to avoid service charges. Unless the contract terms are specific, the broker may not give the buyer the earnest money back unless the seller has given prior written approval for the return of that earnest money. With the absence of contract authorization and the funds being disputed between the parties, the broker shall see that the funds are interplead into court of competent jurisdiction. The broker may only keep up to six months' worth of funds in an escrow account for trust account service charges and must present true representation of any property to avoid intentional or unintentional misrepresentation. Every Arkansas real estate principal broker must do all of the following EXCEPT A) keep transaction records for three years. B) display a sign at his or her office location. C) reconcile trust accounts monthly. D) employ at least one salesperson. - Correct Answer ✅ employ at least one salesperson.
And Answers 2023
The answer is employ at least one salesperson. There is no requirement that a broker must employ a salesperson; there are many one-person offices. All trust account bank statements must be reconciled in writing at least monthly and balance to the total amount of funds deposited in the account. All records shall be maintained by the principal broker for a period of three years and shall be open to inspection by and made available to the investigative staff of the commission. A principal broker shall maintain a place of business and shall display a permanently attached sign bearing the name of his or her real estate company. What is the name of the Arkansas Supreme Court ruling that requires all licensees to use attorney-approved contracts and real estate forms? - Correct Answer ✅ Pope County Bar Association v. Suggs (1981) The answer is Pope County Bar Association v. Suggs (1981). Pope County Bar Association v. Suggs (1981) states that all real estate forms used by licensees shall be approved by an Arkansas attorney. Jones v. Mayer was a 1968 Supreme Court decision reaffirming the Civil Rights Act of 1866 that prohibited all racial discrimination. Regulation Z requires the lender to provide all finance charges to the borrower. RESPA requires the lender to provide to the borrower the actual loan costs that he or she will incur and other consumer protections. A broker wants to list a property but is getting a lot of competition from other brokers who also would like to list it. The broker offers the seller
And Answers 2023
Adverse material facts regarding a property of which a licensee would be expected to have knowledge and disclose under the Arkansas Real Estate Commission do NOT include - Correct Answer ✅ events that might have stigmatized the property. The answer is events that might have stigmatized the property. A licensee must disclose information involving any known facts about a property that would affect its value or desirability. However, Arkansas law does not require real estate licensees to disclose information about stigmatized property. Routine services that do NOT create an agency relationship are referred to as - Correct Answer ✅ ministerial acts. The answer is ministerial acts. Only informational services are considered "ministerial" and may be performed by a nonlicensee. Only a licensee may perform services that are transactional, routine brokerage, and even customer service level. In an Arkansas time-share development, a sales agent must show evidence of a corporate bond in what amount? - Correct Answer ✅ $5, The answer is $5,000. The sales agent must show proof of a $5, corporate bond.
And Answers 2023
If a broker tells a lender that the sales price on a property is something above its actual sales price, the - Correct Answer ✅ broker can lose his or her license and may be fined and imprisoned by the proper authorities. The answer is broker can lose his or her license and may be fined and imprisoned by the proper authorities. A broker must not suggest two different prices for a contract. Brokers are not to be parties to dual contracts for the purpose of obtaining a larger loan. Regarding duties and licensing in Arkansas, personal real estate assistants - Correct Answer ✅ may insert factual information into form contracts under the employing broker's supervision and approval. The answer is may insert factual information into form contracts under the employing broker's supervision and approval. Secretarial work, such as inserting factual information into form contracts under the employing broker's supervision and approval, does not require licensing, because it is done under the supervision of the broker. Personal assistants may be licensed in order to perform more services for the licensee who hired them, but they do not have to be licensed to work as an assistant. Only licensed personal assistants may independently host open houses. The maximum compensation that will be paid from the Arkansas Real Estate Recovery Fund for the acts of any one licensee or any group of related claims is - Correct Answer ✅ $50,000.
And Answers 2023
D)
have a permanent sign on the place of business. - Correct Answer ✅ designate a territory in which licensees can operate. The answer is designate a territory in which licensees can operate. Arkansas license law prohibits the establishment of geographical boundaries within a specific area. The law does require that the broker maintain a definite place of business, maintain a special escrow account, and have a permanent business sign. A violation of the license law by an unlicensed person is - Correct Answer ✅ a felony. The answer is a felony. Any person acting as real estate broker or salesperson who does not hold an active, valid Arkansas real estate license or who otherwise violates any provision of the licensee law shall be guilty of Class D felony. In an attempt to close the deal, a time-share broker tells the purchaser that the development will drastically increase in value within the next 45 days. Which of the following BEST describes the broker's statement?
- Correct Answer ✅ The law prohibits predicting or implying specific or immediate increases in the price or value of time-shares.
And Answers 2023
The answer is the law prohibits predicting or implying specific or immediate increases in the price or value of time-shares. According to license law, a time-share broker shall not make a prediction of immediate increases in price or value. The listing agreement with a seller has expired, and the seller lists with a different brokerage firm. The original listing agent now has a buyer interested in the seller's property. The original listing agent - Correct Answer ✅ cannot disclose to the buyer offers received on the seller's property while it was listed with that agent. The answer is cannot disclose to the buyer offers received on the seller's property while it was listed with that agent. The original listing agent is now free to represent the buyer. The original agent no longer has an agency relationship with the seller. However, confidential information must remain confidential forever. Agents must always disclose information about the physical condition of the property if the agent knows of any defects. What minimum balance must be maintained in the Arkansas Real Estate Recovery - Correct Answer ✅ $250, The answer is $250,000. A minimum balance of $250,000 must be maintained in the Arkansas Real Estate Recovery Fund.
